A new deal between Microsoft and the U.S. General Services Administration (GSA) will provide millions of federal employees with free access to Copilot AI. The agreement includes a year of Microsoft 365 Copilot for agencies using the secure G5 licence, projected to save taxpayers $3.1 billion in the first year and over $6 billion across three years.

The move supports the federal AI Action Plan, designed to streamline operations, reduce manual work, and improve services for citizens. Agencies will also benefit from major Azure discounts and the removal of data transfer charges, simplifying system upgrades and interagency collaboration.

Security assurances are central to the rollout. Microsoft’s cloud services already meet FedRAMP High standards, and while Copilot awaits full certification, it holds provisional approval from the Department of Defense. Complementary tools, including Microsoft Sentinel and Entra ID, support the government’s “zero trust” security architecture.

Microsoft will invest $20 million in training initiatives to support adoption. GSA officials hailed the arrangement as a “paradigm shift” in procurement practices, while CEO Satya Nadella said it will deliver cost savings, bolster security, and transform federal workflows.